–
an entity required to be authorised or regulated to operate in the
financial markets. The following list includes all authorised entities
carrying out the characteristic activities of the entities mentioned,
whether authorised by an EEA State or a third country and whether or not
authorised by reference to a directive:

a credit institution

an investment firm

any other authorised or regulated financial institution

an insurance company

a collective investment scheme or the management company of such a scheme

a pension fund or the management company of a pension fund

a commodity or commodity derivatives dealer

a local firm

any other institutional investor

–
in relation to MiFID or equivalent third country business, a large
undertaking, meeting two of the following size requirements on a company
basis:

balance sheet total of EUR 20,000,000

net turnover of EUR 40,000,000

own funds of EUR 2,000,000

–
in relation to business that is neither MiFID or equivalent third
country business, a large undertaking meeting either of the following
conditions:

a
body corporate (including a limited liability partnership) which has
(or any of whose holding companies or subsidiaries has) called up share
capital of at least £10 million (or its equivalent in any other currency
at the relevant time);

a
large undertaking that meets (or any of whose holding companies or
subsidiaries meets) two of the following tests: (i) a balance sheet
total of EUR 12,500,000; (ii) a net turnover of EUR 25,000,000; (iii) an
average number of employees during the year of 250;

a
national or regional government, a public body that manages public
debt, a central bank, an international or supranational institution
(such as the World Bank, the IMF, the ECP, the EIB) or another similar
international organisation;

another
institutional investor whose main activity is to invest in financial
instruments (in relation to the firm's MiFID or equivalent third country
business) or designated investments (in relation to the firm's other
business). This includes entities dedicated to the securitisation of
assets or other financing transactions.

Lyxor
UCITS compliant Exchange Traded Funds (Lyxor UCITS ETFs) referred to on
this website are open ended mutual investment funds (i) established
under the French law and approved by theAutorité des Marchés Financiers (the French Financial Markets Authority), or (ii) established under the Luxembourg law and approved by the Commission de Surveillance du Secteur Financier (the Luxembourg Financial Supervisory Committee). Most, if not all, of the protections provided by theUK
regulatory system generally and for UK authorised funds do not apply to
these exchange traded funds (ETFs). In particular, investors should
note that holdings in this product will not be covered by the provisions
of the Financial Services Compensation Scheme, or by any similar scheme
in France.

This
website is exclusively intended for persons who are not "US persons",
as such term is defined in Regulation S or the US Securities Act 1933,
as amended, and who are not physically present in the US. This website
does not constitute an offer or an invitation to purchase any securities
in the United States or in any other jurisdiction in which such offer
or invitation is not authorised or to any person to whom it is unlawful
to make such offer or solicitation. Potential users of this website are
requested to inform themselves about and to observe any such
restrictions.

However,
most Lyxor UCITS ETFs follow synthetic replication process. This
consists of entering into a derivative transaction (a ‘Performance
Swap’, as defined below) with a counterparty that provides complete and
effective exposure to its benchmark index. Lyxor has adopted this
methodology in order to minimise tracking error, optimise transaction
costs and reduce operational risks.

A
Performance Swap is a contractual agreement which is negotiated
over-the-counter (OTC) between two parties: the Lyxor UCITS ETF and its
counterparty. From a risk perspective, each Performance Swap ranks
equally with other senior unsecured obligations of the counterparty,
such as common bonds (i.e., same rights to payments). In the Performance
Swap, the counterparty of the Lyxor UCITS ETF commits to pay the Lyxor
UCITS ETF a variable return based on a pre-determined benchmark index,
instead of a fixed stream of income (as in bonds). At the same time, the
counterparty will receive from the Lyxor UCITS ETF the performance and
any related revenues generated by the basket's assets (excluding the
value of the Performance Swap) held by the Lyxor UCITS ETF. Information
provided on individual ETFs includes data on the basket relating to the
ETF and the percentage value of the basket represented by each asset.
The information is relevant to the closing values on the date given.

Investment Risks

The
Lyxor UCITS ETFs described on this website are not suitable for
everyone. Investors' capital is at risk. Investors should not deal in
this product unless they understand, having obtained independent
professional advice where necessary, its nature, terms and conditions,
and the extent of their exposure to risk. The value of the product can
go down as well as up and can be subject to volatility due to factors
such as price changes in the underlying instrument and interest rates.
If a fund is quoted in a different currency to the index, currency risks
exist.

Prior
to any investment in any Lyxor UCITS ETF, you should make your own
appraisal of the risks from a financial, legal and tax perspective,
without relying exclusively on the information provided by us. We
recommend that you consult your own independent professional advisors
(including legal, tax, financial or accounting advisors, as
appropriate).

Specific Risks

Counterparty risk:

Through
Lyxor UCITS ETFs, investors are exposed to counterparty risk resulting
from the use of OTC swaps with Société Générale. Pursuant to the UCITS
Directive 2009/65/EC (as may be amended), the exposure of a UCITS to a
swap counterparty which is a credit institution for the purpose of the
Directive, cannot exceed 10% of the total fund assets. It is recommended
that potential investors study the fund prospectus before investing.

As of 1st January
2013, the long term, senior, unsecured debt obligations of Société
Générale were rated A by Standard and Poor’s Ratings Services (S&P)
and A2 by Moody’s Investor’s Services Inc (Moody’s). Companies are rated
by S&P from AAA (highest rating / most secure) to D (lowest rating /
in default / most risky), and by Moody’s from Aaa (highest rating /
most secure) to C (lowest rating / in default / most risky).

Liquidity risk:

Société
Générale is not the only market-maker for Lyxor UCITS ETFs. Société
Générale and any other market makers supporting Lyxor UCITS ETFs on
exchange must follow the respective London Stock Exchange (LSE)
requirements and guidelines. On-exchange liquidity may be limited as a
result of a suspension in the underlying market represented by the index
tracked by the ETF; a failure in the LSE, Société Générale or other
market-maker systems; or an abnormal trading situation or event.

The securities can be neither offered in nor transferred to the United States.

Tax

The
tax statement is only a general guide. The tax treatment of investments
will depend on an individual’s circumstances. If investors are in any
doubt as to their tax position, they must consult with an appropriate
professional tax adviser. This statement of the UK tax treatment of the
product is based on our understanding of the laws and practice in force
as of the date of this document and is subject to any changes in law and
the interpretation and application thereof, which changes could be made
with retroactive effect.

Further information on the risk factors are available in the Risk Warning section of the website.

Any fund prospectus and supplements are available at www.lyxoretf.co.uk.
Information given about the past performance of the funds is no
guarantee of future performance. No investment decision should be taken
without reading the fund prospectus and any fund supplement of the fund
concerned.

Although
the content of the website is based upon information that Lyxor UK and /
or Société Générale consider reliable or comes from sources that Lyxor
UK and / or Société Générale consider reliable, neither Lyxor UK nor
Société Générale have verified such information. Lyxor UK and Société
Générale make no representation or warranty as to the accuracy,
completeness or adequacy of any information. Any reproduction,
disclosure or dissemination of the materials available on the website is
prohibited.

I CONFIRM THAT I HAVE READ AND UNDERSTOOD THE IMPORTANT INFORMATION THAT IS CONTAINED ABOVE

By continuing to browse the site, you are agree on the use of cookies to track the number of visits.To know more about cookies policy:click here